Summary
- UK regulatory channels may soon make a preliminary ruling on Microsoft's buyout of Activision Blizzard, a deal that could give Microsoft an advantage in the gaming industry.
- The UK's Competition and Markets Authority previously blocked the deal due to concerns of a monopoly in cloud-based gaming, but Microsoft made changes to address these concerns.
- If a preliminary ruling is passed next week, a final decision on the buyout could be made by October 18th, which would have significant implications for Microsoft and the gaming industry.
The UK’s regulatory channels could make a preliminary ruling on Microsoft’s planned buyout of Activision Blizzard soon. Shockwaves were sent throughout the gaming industry when Microsoft announced its plans to purchase mega-publisher Activision Blizzard last summer, a deal that would add blockbuster franchises like Call of Duty and World of Warcraft to Xbox’s growing assortment of properties. This could be one of the biggest buyouts in the history of gaming, and naturally there has been plenty of debate over whether Microsoft would gain an unfair advantage should the deal clear all global regulatory outlets.
Microsoft’s planned purchase of Activision Blizzard hit a roadblock when it was brought before the United Kingdom’s Competition and Markets Authority back in April. Due to concerns that Microsoft would gain a monopoly in cloud-based gaming, the CMA voted to block the deal - a decision that drew criticism from UK Chancellor of the Exchequer Jeremy Hunt and led to an appeal from Microsoft itself. The CMA would later pause its legal efforts to block the Activision Blizzard buyout to allow Microsoft a chance to address its concerns in July.
After months of deliberation, the UK’s Competition and Markets Authority could finally reach a preliminary ruling regarding Microsoft’s impending purchase of Activision Blizzard as early as next week, as reported by The Verge. This development comes after Microsoft’s recent altering of its deal to transfer cloud streaming rights for Activision Blizzard games to Ubisoft - which could alleviate the CMA’s main point of contention toward the buyout. Should a preliminary ruling be passed next week, a final one to allow Microsoft’s deal to pass could be made by October 18th.
Microsoft’s Activision Blizzard purchase has already cleared regulatory hurdles in countries like New Zealand and China, and many industry insiders are considering it a done deal at this point. However, things recently heated up during the Federal Trade Commission’s legal battle with Microsoft over the buyout, as its investigations have led to a series of massive leaks surrounding Xbox’s next console, possible future releases like a Red Dead Redemption 2 Series X update, and even Microsoft’s abandoned plans to buy Nintendo and Warner Bros. Games.
While Microsoft’s plan to bring Activision Blizzard under the Xbox umbrella is still being contested in the US, it seems like the UK’s Competition and Markets Authority could be getting close to reaching a final verdict over allowing it to proceed. The UK is one of the last major countries Microsoft needs to get approval in before its Activision Blizzard buyout is finalized, so the CMA’s preliminary ruling could have major ramifications for not only Microsoft, but the entire video game industry for years to come.
Source: The Verge